Los Angeles daily herald., 1887-10-10
Cost Of New Railway Construc.
tiOm. HR

In an editorial based upon the record
of track-laying in the first eight months
of the year recently given in The
Rdil,oay Age, the Commercial and FL
ndnciaI Chronicle makes some interest
ing and instructive statements in re-
gard to the probable amount of money
which such construction represents.
Examining some of the recent issues
of bonds by the principal companies
it finds that in the case of the Chicago,
Milwaukee and st. Paul, Chicago,
Burlington and Quincy and Chicago,
Rock Island and Pacific they were at
the rate Of 10000 per mile,
while the Chicago extension Of
the Atchison, Topeka and Santa
Fe is bonded for about $S5 900
per mile, its Kansas extensions vt
from SIC, 900 to $21 900 per mile, the
Northern Paci6c's main line at $25,-
600 per mile, although its various new
branches are bonded for much less,
and the Montana extension of the st.
Paul Minneapolis & Manitoba at $17,-
500 per mile. On tho whole the
Chronicle thinks that $40, 900 is a fair
average at present of the amount of
bonds put afloat on every mile of sim
gle track road built and equipped this
year, the average being increased
however in few cases where .expen-
siye terminals or large bridges have
to be provided. In regard to the issue
of capital stock it notes that several
companies, including the Chicago Il
North Western, St. Paul Minneapolis
& Manitoba and Chicago Burlington
& Quincy, are issuing no stock
at all on their new extensions,
and that the Atchison has
nominally issued stock on its Chicago,
Kansas and Western at the rate Of
$4,000 per mile and on its Chicago
extension at higher rate, but in both
cases the stock is all held in the Atch-
ison treasury and therefore may be
practically regarded as unissued. On
the other hand the Chicago, Milwau-
kee and St. Paul, Missouri Pacific,
Rock Island, Fort Worth and Denver
City, and Milwaukee and Northern
have issued stock at from SIC, 900 to
$40, 900 per mile. Without having ad-
equate data for positive statement
the Chronicle thinks that $40, 900 per
mile of bonds and $N, 900 per mile of
stock, or total Of $50, 600 per mile,
NAV be considered a fair average of
the capital creations by the larger
companies. This is probably an over
rather than an under estimate, as it
seems to be based on the assumption
that each company has issued both
bonds and stock at the rate named,
whereas in some cases bonds and in
other cases stock are made to provide
the means of construction. On the
other hand large amount of local
aid contributed for the building of new
roads is not taken into account, but
would serve to diminish the amount
to be provided by the companies.
On the basis assumed by the ChrOn-
icle the nearly $500 miles of new
track which we showed to have been
laid up to September l, cost about
$195, 100000. Ii, however, we assume
that the average cost did not exceed
$4,000, which would seem to be a
liberal estimate, this addition to our
mileage has already called for an ex-
penditure of $162 SOC, 200. Assuming
that the new mileage for the year will
reoch 10000 miles, which of course
cannot yet be positively foretold, the
expenditure in new construction dur
ing 1887 is likely to reach the enor-
NOUS figures of from $500, 0,000,0 900 to
$500, 900, ,000.-[ Railway Age